What is a traded endowment policy

1 Www.tradedendowment.com
Email:ckteh186@gmail.com
Since 2004 in Singapore
Have you ever invested into EndowmentHave you ever invested into Endowment
Plans?Plans?
Features of Endowment Plans:Features of Endowment Plans:
• Low risk investmentsLow risk investments
• Forced SavingsForced Savings
• Higher returns than Bank DepositsHigher returns than Bank Deposits
Disadvantages:Disadvantages:
• Take more than 10 to 15 years to break-evenTake more than 10 to 15 years to break-even
• Low returns of 2% to 3%Low returns of 2% to 3%
• Bulk of returns at tail-end of the policiesBulk of returns at tail-end of the policies

What is a Traded Endowment Policy?What is a Traded Endowment Policy?
• When you invest in Traded Endowment PolicyWhen you invest in Traded Endowment Policy
(TEP):(TEP):
• basically youbasically you buy over an existing Endowmentbuy over an existing Endowment
PolicyPolicy
• Sold by the Original PolicyholderSold by the Original Policyholder before thebefore the
Maturity DateMaturity Date
• Instead of waiting 25 years for an EndowmentInstead of waiting 25 years for an Endowment
policy to mature, you can choose topolicy to mature, you can choose to invest ininvest in
TEPs with asTEPs with as short as 4 years to maturityshort as 4 years to maturity!!

Sell or TradeSell or Trade
the Endowmentthe Endowment
PolicyPolicy
Surrender Value + +Surrender Value + +
With Profit
Endowment
Policy
Insurance
Company
Market
Maker
Low Surrender
Value
Legal
AssignmentX
What is a
Traded Endowment Policy (TEP)?
• 40% surrender
• 60% reach
maturity
Regulated by the FSA

Other benefitsOther benefits
Methodical Process
Market
Maker or
TEP
Broker
Market
Maker’s
Solicitor
Independent
Solicitor
Extra £130
Insurance
Company
Detailed Check
√ Go thru fine prints
√ Assignment ability
√ Bankruptcy check on life assured
√ Previous owner has NO claims to
policy
√ No third party interest in policy
 Low Product Risk for
investor
Original
policy owner
Investor
Repeat check
on policy

What if you can Invest on 22What if you can Invest on 22ndnd
year?year?

Low Financial Risk
 Limited downside
 Strong guaranteed values
 Sum Assured +
 Attaching Bonus
 Terminal bonus at maturity
Chart is only for illustration purpose

 Save $ For children education (6 to12 years plan)
 E.g. Protects your money if stock market crashed a few months prior to the payment
of university fees or sending their child abroad for further studies.
 For Retirement Savings
 Protection against stock market volatility
 A Low Risk Annuity Plan – currently most annuity plans only
offer below 3% Annual Returns
 Mid-term alternative investment plan (5 to 8 years)
 Low risk, moderate growth & high % of capital guarantees
 £ denominated investment for currency diversification
 Most are heavy on US$.
 £ is a strong currency to diversify and spread the currency
risks.
Why Do People Invest in TEPs?

TEP is allowed by MAS since 1 July 2004TEP is allowed by MAS since 1 July 2004
• http://www.mas.gov.sg/news-and-publications/press-releases/2004/distribution-of-traded-endowment-policies.aspx

www.tradedendowment.comwww.tradedendowment.com
Email:ckteh186@gmail.comEmail:ckteh186@gmail.com
Contact TEP Wealth Educator to know more:Contact TEP Wealth Educator to know more:
Clarence TEH , HP 96943381Clarence TEH , HP 96943381
Thank You forThank You for
spending time tospending time to
explore!explore!
TEP –TEP – GrowthGrowth your money with Certaintyyour money with Certainty

What is a traded endowment policy

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